container store Said It was announced late Sunday that it was filing for Chapter 11 bankruptcy protection after years of losses and declining sales.
The retailer, known for selling storage and organizational products, said its stores and online operations will remain open while it goes through the bankruptcy process. Customer deposits and orders will continue to be honored. The Container Store has more than 100 locations in the US
The Container Store's problems come during what has been a tough year for some brick-and-mortar retailers, with store closures spike Nearly 70% this year. As of November, about 45 retailers have filed for bankruptcy protection in 2024, compared to only 25 retail bankruptcies in 2023, according to a recent CoreSight report.
Some retailers are struggling to attract inflation-weary customers who are cutting back or becoming more selective in their search for sales and deals. The Container Store has posted losses in each of its last two fiscal years, with sales declining nearly 23% in that time.
The company on Sunday said it has negotiated and sought support for a pre-determined plan of restructuring and expects the entire process to take less than 35 days.
The Container Store's CEO said, “The Container Store is here to stay. Our strategy is solid, and we believe the steps we are taking today will allow us to grow our business, deepen customer relationships, “Will allow us to expand our reach and strengthen our capabilities.” Satish Malhotra said in the statement.
The bankruptcy does not include its Alfa business in Sweden, according to the statement.